It takes 10X thinking and 10X actions to build generational wealth. But how do you do it?
An important thing I want people to understand is that you shouldn’t aim to be rich. You need to aim to be financially free.
A financial legacy that will provide for your family for years to come is a big part of that. Even though a lot of people know how to earn money, they don’t know how to build generational wealth.
Generational wealth isn’t about your kids becoming freeloaders. It’s about giving them stability and options for them to do great things. Let’s go over how you can give them those opportunities.
Don’t save — Invest
In the entire history of this entire planet, no one has saved their way into generational wealth.
Every person who has reached that elite status made investments of some variety. Warren Buffet, John D. Rockefeller, and Sam Walton are just a few of the names that come to mind.
All of these entrepreneurs invested once they made substantial amounts of money. That’s why their kids and grandkids enjoy the lives they do today.
Every year, I go broke investing. What I mean by that is that until that point, I build up a chunk of cash that I can put into a big investment. (I like hard assets like multifamily real estate.)
This leaves me nothing in savings. However, these investments provide passive income that will continue as long as I own that asset.
Then, I can pass them down to my children.
“The most important step a person can take to build generational wealth is to invest, invest, and invest – as early and as much as possible.”— Leah Bourne, Managing Editor for The Money Manual
Do the math to build generational wealth
The first thing I told you was to invest, and to invest a lot.
Notice that I didn’t say to invest in just anything. I strictly adhere to Warren Buffet’s number one rule.
“Never lose money.”
So, prior to investing that wad of cash, you have to crunch some numbers on the deal. Your due diligence is what is going to ensure the generational wealth that will take care of your family long after you are gone.
Not all stocks are going to pay dividends. Not all real estate is going to cash flow. Do the homework. Your family will thank you for it.
These are the basics of how to build generational wealth. It takes discipline and grit, but it can be done. We all want the best for ourselves and our families. That’s the reason we even take on these big goals and pursuits that seem impossible.
Want to learn live about building generational wealth — straight from billionaires? Hurry up and secure your virtual seat @ 10X Growth Conference 2022.
I know you’ll be great.